The Treasurer asks for advice on a question submitted by the Governor of the Commonwealth Bank of Australia, as to whether the Commonwealth Bank of Australia has power to purchase the business goodwill and all the assets and liabilities of another bank, and pay for such assets by issuing debentures in terms of the Commonwealth Bank Act 1911, provided the Commonwealth Treasurer approved of the debentures being sold in this manner.

The powers of the Bank, as far as material to this question, are contained in section 7 of the Commonwealth Bank Act 1911, which empowers the Bank- (a) to carry on the general business of banking;

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(i) to do anything incidental to any of its powers. In my opinion the proposed transaction is not within the power of the Commonwealth Bank. It is not part of the general business of banking, nor incidental to that business, to purchase the goodwill and concern of another bank. Such a power requires to be given by express words. See Ernest v. Nicholls 6 H.L.C. 401.

[Vol. 13, p. 45]

(1) This date is attributed. The opinion is undated in the Opinion Book, but appears between other
opinions dated 14 September 1914 and 16 September 1914. Mr Irvine was succeeded as Attorney-General by Mr Hughes on 17 September 1914.